CPPIB Makes Largest 2011 Commitment to Euro Buyout Fund: CORRECTED

CPP Investment Board, which manages Canada’s national pension fund, said its assets rose to C$161.6 billion ($160.2 billion), for the year ended March 31, making it the seventh-largest pension fund in the world, as its investment portfolio returned 6.6 percent, according to Reuters.

CPPIB continues to diversify into Asia and Latin America and India, but is also still very much focused on Europe. Following the release of the fund manager’s fiscal 2012 results Reuters wrote that incoming chief executive Mark Wiseman said Europe is generally unattractive for investment, but there are still pockets such as essential infrastructure where there is the opportunity for attractive investments.

The proof is also in the private equity pudding with CPPIB making its largest 2011 vintage commitment to a European buyout behemouth. Also featuring in the pension fund’s 2011 vintage portfolio are a China, France and Australia-focused fund.

Those funds that posted the highest multiples for the pension fund for the period to 31 December, 2011 also include European buyout veteran Advent International with its 2001 vintage Advent International GPE Fund IV posting a multiple of 2.9x and its 2005 vintage posting a 2.3x multiple. PAI Partners’ 2001 vintage PAI Europe III came in third place in terms of fund multiple with 2.7x. US-based Onex Partners’ 2003 vintage posted the second highest multiple at 2.8x for the period and the 2004 Hellman & Friedman Capital Partners V posted a multiple of 2.4x.

Those with the lower multiples at the other end of the spectrum included MidOcean Partners II (2005); Heartland Industrial Partners (2001) and Terra Firma Capital Partners III (2006) with multiples of 0.001, 0.41 and 0.49 respectively and commitments of $100,000,000; $150,000,000 and $300,000,000 respectively.

Scroll down today’s slideshow to find out what 2011 funds CPPIB placed its bets on last year.

Image credit: Photo of euro bar chart courtesy of Shutterstock

[slideshow]

[slide title=" 6. Chequers Capital XVI"]

Nation: France

CPPIB Commitment: $75,000,000

Fund Size: €850 million ($1.07 billion)

Fund Strategy: Seeks to invest in majority control positions in primary buyouts of French mid-market companies, in all sectors with a transaction size between €30 million and €300 million enterprise value, with typical equity investments of €20 million to €100 million.

[slide title=" 5. HitecVision VI "]

Nation: US

CPPIB Commitment: $100,000,000

Other investors: Adams Street Partners, Argentum, ATP Private Equity Partners, DNB, Goldman Sachs, HarbourVest, The Hillman Company, Indigo, KEVA, KLP, Partners Group and Storebrand

Fund Size: $1.5 billion

Fund Strategy: Oil and gas sector

[slide title=" 4. Archer Capital Fund 5 "]

Nation: Australia

CPPIB Commitment: $145,000,000

Fund Size: $1.52 billion

Fund Strategy: Focused on buyouts of businesses with enterprisevalue of between $200 million and $700 million. A broad investment mandate allowing investment in businesses in any commercial sector, with the exception of those that are property related or based on commercially unproven technology.

[slide title=" 3. Hony Capital Fund V "]

Nation: China

CPPIB Commitment: $200,000,000

Fund Size: $2.37 billion

Fund Strategy: Mid-market buyout opportunities in China

[slide title=" 2. KSL Capital Partners III"]

Nation: US

CPPIB Commitment: $250,000,000

Fund Size: Over $2 billion

Fund Strategy: Specialised in investments in the travel and leisure businesses

[slide title="1. BC European Capital IX"]

Nation: Europe

CPPIB Commitment: $350,000,000

Fund Size: €6.5 billion

Fund Strategy: Focused on large buyouts of European and multinational businesses

[/slideshow]

CORRECTION: Slides previously misstated CPPIB’s commitments to funds presented in this slideshow.

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